Cross-Currents in the Economy
Today we saw retail sales falling by 1.1% in the month of December. We also saw producer prices rose, but at the slowest pace since March, 2021. Microsoft lays off 10,000 employees. Amazon lays off 18,000 employees. Salesforce lays off 8,000 employees.
A lot of cross currents in the economy. This is all part of what the Fed intends to do when they raise rates to cool off the economy.
It looks like what the Fed is trying to do is working, but the collateral impact of that is unemployment. When businesses are not doing as well, because of slower volumes of sales, such as retail, what they start doing is cutting heads…
(Listen to Mitch explain these cross currents, how CEO’s are getting ahead of a potential recession, and what this means for consumers).